Canny Sir Ken holding tight

He is locked in meetings with his advisers from ABN Amro and Hoare Govett, hammering out a new offer after receiving the green light for his bid from Trade Secretary Patricia Hewitt.

Bradford-based Wm Morrison bid £2.9bn in January, but Fidelity and other shareholders are making last-minute attempts to obtain up to £3 a share.

Sir Ken wants an agreed deal, but is reluctant to push the boat out on price, given the lack of other bidders and the size of the task facing him when it comes to swallowing the struggling Safeway. He hopes to table a formal offer early next week.